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Sage Publishing Company needs to decide which textbooks to publish for the next three academic years. The following table gives relevant data to the decision

Sage Publishing Company needs to decide which textbooks to publish for the next three academic years. The following table gives relevant data to the decision making process. Maximum demand is the most of each that that could be sold, Fixed cost is incurred if any of that book is produced.

Maximum Demand

Fixed Cost

Profit per book

Book A

5000

15000

22

Book B

7000

18000

25

Book C

9000

12000

21

Book D

6000

10000

14

Book 5E

8000

21000

32

Sage has the capacity to produce a total of 20,000 books.

  • Write the formulation to determine which books should be published and how many of each to publish in order to maximize total profit
  • Setup the problem in Excel and solve using Solver
  • Report solution and objective result in the Word document

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